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January 12, 2017
Siyata Mobile Inc. (TSX.V: SIM) is a leading global developer and provider of innovative cellular communication systems under the Uniden® Cellular brand. Siyata’s “Connected-Vehicle-Devices” are specifically designed for professional fleets including trucks, vans, buses, emergency service vehicles, government cars and more.
Siyata aims to provide greater mobile connectivity for professional drivers and to facilitate replacement of the aging in-vehicle, multi-device status quo with a single device that incorporates voice, push-to-talk, data, and fleet management solutions.
Siyata also develops, manufactures and sells cellular repeaters for improving coverage in spotty areas as well rugged mobile devices for enterprise customers.
Anil Mall, President of Stockpools Inc. had the opportunity to sit down with Marc Seelenfreund, CEO of Siyata Mobile Inc. to get a better understanding of the company, its roots and where it is headed in 2017 and beyond.
Anil: Hi Marc, thanks for taking the time with us to give our audience and readers a better understanding of Siyata Mobile. Could you give us a quick rundown on how Siyata was born?
Marc: For many years, Motorola dominated the commercial connected in-vehicle market for enterprise customers until it was bought out by Google in 2011. Once that happened, Google was only interested in the consumer markets and this division was totally shut down leaving a major void in the market, like $75 to $100M of sales per year. When this happened, we were hired by a major mobile operator to build the next generation in-vehicle-cellular-device to replace the aging Motorola in-vehicle-phones. We decided it was interesting space with not a lot of competition, so we took the money, hired some ex-Motorola Israeli engineers and the rest is history. Just to give you an idea of size, we have sold in the past 4 years over 150,000 devices.
Anil: Can you give us an overview of Siyata?
Marc: Siyata develops, markets and sells innovative cellular solutions that are focused on enterprise customers, mainly for commercial fleets and vehicles. We bring a single dedicated communication device which allows our customers to have much better and safer cellular connectivity in a truck, bus, van, ambulance, police car etc. It is very unique and superior to anything in the market.
Anil: So, you are saying commercial drivers don’t bring their own mobile device to communicate with dispatch and fleet managers?
Marc: No, I don’t think my sales team has ever seen a truck driver use a IPhone or a Samsung in commercial fleets. The only devices that commercial drivers are legally able to use are devices that are physically connected to their dashboard like our devices and two way radio systems. Additionally, our solutions are catered towards the noisy and rugged environment of a commercial fleet, something that no other device offers in the market.
Anil: So does this solution save commercial fleets and vehicles money?
Marc: A typical commercial vehicle has $6,000 to $10,000 in hardware installed, while our solution is less than $1,000 installed. Additionally, the fleet saves monthly fees, as now you only have one SIM card, one data package and consolidated applications for further savings as opposed to multiple devices with multiple monthly payment plans. Our offering is extremely cost effective both on the CAPEX and OPEX sides.
Anil: Who are the competitors in the market place?
Marc: Nobody is doing exactly what we’re doing. There are other companies that make rugged tablets, two way radios or mobile devices, but no other company offers an all-in-one device. With our solution, you don’t need a cellular phone, a tablet, eLog hardware, GPS hardware, a black back box hardware and a two-way radio system. You can buy our all in one Uniden® device at a very competitive price that allows you to have all those technologies running on a single device. Its like two way radio on steroids and that’s the future of commercial vehicle communications.
Anil: You mention Uniden® and noticed that you have branded your portfolio of devices with the Uniden® brand name. Why is this strategic?
Marc: It was important for us to have a very good brand. Siyata is a small company and we thought it was important for our North America penetration to have a brand which is well recognized. We were able to partner with Uniden, which is a very strong brand in the two-way radio and telecom space. This brand puts us in the league of Motorola, Kenwood and some of the most recognizable names in the telecom industry. We believe that we can be the dominant player in this space and the Uniden brand is just another piece of the puzzle.
Anil: You want to be the dominant player in the North America, did you achieve this in Israel market?
Marc: We began the company in Israel and now sell to all cellular providers there so we definitely have 100% market share. We’re very active in Israel and sell to the government, the army, defence companies, logistic companies, police, ambulances, taxis and more.. As we grow the company, we are very focused on North America, and believe the market in North America is 40 times the size of Israel. So it is an extremely large market opportunity for us.
Anil: How big is this North American opportunity?
Marc: 99% of the 12 million commercial vehicles in the United States still use outdated two way radio to communicate, so we are in inning one of a paradigm shift. The future is an all in one push to talk solution over cellular for a more robust communications platform and we are the only all-in-one comprehensive solution in the industry. This is well north of a $7B total addressable market and we intend to collaborate with major cellular operators like Bell, Telus, AT&T and others as well as push to talk software companies like Kodiak to provide a leading market solution in this market. We certainly have a strong lead on any other companies that may want to get into this space as we have already sold over 150,000 units and have robust, proven technology and a strong customer base.
Anil: Wow. That’s massive. Can you briefly touch base how your sales have grown over the last 5 years?
Marc: Sure, we grew our sales to around $12.5M in 2016 and we are now on a $4M dollar run rate per quarter. I think we’ll be able to continue this run rate moving forward to well over $20M dollars in 2017. We work very closely with large scale cellular providers that want to take market share away from the much smaller two way radio providers and they need a solid hardware partner to do this. As a result, we think that we are going to have a very big year in 2017. It’s the right time, two way radio is dying and we are the disrupting technology that can shift this mega market.
Anil: That’s great, Marc, I think our readers learned a lot from this and thank you for providing us with one of your Uniden 620 Rugged Devices to give away to one our readers in the Siyata Mobile stock picking contest!
Marc: Thank you Anil. It was a pleasure speaking with you.